Proposed Accrual Regulations Dealing with “Greater Of” Formulas

While the IRS had previously issued guidance providing some retroactive relief, the new proposed regulations provide guidance as to how plans with “greater of” formulas may satisfy the benefit accrual rules prospectively.

Document Excerpt

This document contains proposed regulations providing guidance on the application of the accrual rule for defined benefit plans under section 411(b)(1)(B) of the Internal Revenue Code (Code) in cases where plan benefits are determined on the basis of the greatest of two or more separate formulas.

Link http://edocket.access.gpo.gov/2008/pdf/E8-13788.pdf

 

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